General Studies 2021 GS Paper II 10 marks 150 words Compulsory Explain

Q3

How have the recommendations of the 14th Finance Commission of India enabled the States to improve their fiscal position? (Answer in 150 words) 10

हिंदी में प्रश्न पढ़ें

भारत के 14वें वित्त आयोग की संस्तुतियों ने राज्यों को अपनी राजकोषीय स्थिति सुधारने में कैसे सक्षम किया है? (उत्तर 150 शब्दों में दीजिए)

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Directive word: Explain

This question asks you to explain. The directive word signals the depth of analysis expected, the structure of your answer, and the weight of evidence you must bring.

See our UPSC directive words guide for a full breakdown of how to respond to each command word.

How this answer will be evaluated

Approach

The directive 'explain' requires demonstrating causal linkages between the 14th Finance Commission's recommendations and improved state fiscal health. Structure: brief context on 14th FC's radical shift (42% devolution, abolition of Plan/Non-Plan distinction) → body explaining specific recommendations enabling fiscal improvement → conclusion on overall impact.

Key points expected

Increase in tax devolution from 32% to 42% and its direct impact on state resources
Abolition of Plan/Non-Plan distinction giving states flexibility in expenditure
Higher grants to local bodies (PRIs and ULBs) strengthening third tier
Revenue deficit grants to fiscally stressed states like J&K, Himachal, Assam
Fiscal space creation enabling states to undertake welfare schemes like farm loan waivers, education/health spending
Reduced dependence on Central CSS and associated conditionalities

Evaluation rubric

Dimension	Weight	Max marks	Excellent	Average	Poor
Demand-directive understanding	20%	2	Clearly identifies 'explain' requires establishing cause-effect between 14th FC recommendations and fiscal improvement; distinguishes from mere description of recommendations	Partially addresses the causal link but mixes description with explanation; some drift into listing recommendations without fiscal impact	Misinterprets as 'describe' or 'enumerate'; merely lists recommendations without showing how they improved fiscal position
Content depth & accuracy	20%	2	Accurately covers 42% devolution, Plan/Non-Plan merger, local body grants, revenue deficit grants; precise on fiscal autonomy and reduced conditionalities	Covers 2-3 major recommendations with minor inaccuracies (e.g., confusing 13th and 14th FC percentages); misses local body grants or revenue deficit aspect	Significant factual errors (wrong percentage, wrong FC); confuses with other commissions; superficial coverage of only one recommendation
Structure & flow	20%	2	Logical progression: context → vertical & horizontal devolution changes → specific grants → fiscal outcomes; smooth transitions within 150 words	Generally follows logical order but some abrupt shifts; either too brief on context or over-expands on one aspect; word management issues	Disorganised or haphazard arrangement; no clear introduction; rambles or ends abruptly; significantly over/under word limit
Examples / case-law / data	20%	2	Cites specific states benefiting from revenue deficit grants (J&K, Himachal, Assam); mentions UDAY bonds or specific welfare schemes post-2015; uses '42%' or '2.87 lakh crore' precisely	Generic reference to 'some states' or 'increased funds'; vague on specific schemes; no precise data points	No examples or data; irrelevant examples from other FCs; incorrect data (e.g., 32% for 14th FC)
Conclusion & analytical edge	20%	2	Brief analytical conclusion on whether fiscal improvement was sustainable; acknowledges limitations (e.g., GST implementation challenges, own tax efforts still needed)	Standard summarising conclusion without critical insight; or abrupt ending without synthesis	No conclusion; or purely repetitive summary; completely misses the evaluative aspect of fiscal position improvement

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